BEFORETHE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 20268-0001
RECEIVED
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POSTALRATEANDFEE CHANGES,2000
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Docket No. R2000-1
REVISED RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS TALJFIQUE TO QUESTION 5 OF
, PRESIDING OFFICER’S INFORMATION REQUEST NO. 1
The United States Postal Service hereby provides the revised response of
witness Tautique to Question 5 of Presiding Officer’s Information Request No. 1. The
only revision is to part
(9 of the response. The revised response states that the RPW
correction factor should be used to adjust Periodicals TYAR revenues, consistent with
footnote 6 of witness Mayes’ response to Question 1 of Presiding Officer’s Information
Request No. 12, filed May 25,200O.
The question is stated verbatim and is followed by the revised response.
Respectfully submitted,
UNITED STATES POSTAL SERVICE
By its attorneys:
Daniel J. Foucheaux, Jr.
Chief Counsel, Ratemaking
David H. Rubin
475 L’Enfant Plaza West, S.W.
Washington, DC. 20260-I 137
(202) 268-2986; Fax -6187
June 2,200O
Revised June 2,200O
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS TAUFIQUE
TO PRESIDING OFFICER’S INFORMATION REQUEST NUMBER 1
5. See the electronic workpapers of witness Taufique, USPS-T-38,
designated Library Reference l-167. (a) Sheet “Pound Data” cell C42 shows a
multiplication by the RPW correction factor. Please explain why it would not be
more appropriate to divide by the correction factor. (b) The same cell shows
subtraction of TYBR fees. Please explain why it would not be more appropriate
to subtract the TYAR fees. (c) Sheet “Piece Discounts” cell C2 shows a
multiplication by the RPW correction factor and the subtraction of the TYBR fees.
Please explain why it would not be more appropriate for the former to be a
division and for the latter to use TYAR fees. (d) On sheet “Piece Discounts 2”
cells C36-C49. please explain whether it would be more appropriate to calculate
leakage estimates using rounded discounts. (e) Sheet “Discounts” cells D49D64 shows a reference to USPS-T-24, p. 18. The figures shown on the sheet do
not appear to come from referenced page 18. Please provide an explanation
and, if needed, an appropriate reference. (f) Sheet ‘TYAR B.D.” cell D37 and
related after-rates revenue cells do not appear to contain RPW correction factors.
Please explain the role that these correction factors should play in the calculation
of after-rates revenues.
RESPONSE
a. It would be more appropriate to divide by the correction factor rather than
multiplying by it. Since the adjustment factor is relatively small, the resulting
rates would be minimally affected by this change.
b. It would be more appropriate to subtract TYAR fees. I subtracted TYBR fees
in my rate design because I did not have the TYAR fees available at this
stage of the rate design. Once the rates are developed, a new volume
forecast is prepared. At that point the TYAR fees are estimated.
c. Please see my responses to a and b above.
d. It would be more appropriate to calculate leakage estimates using rounded
discounts in cells C36C49 in the sheet “Piece Discounts 2.”
Revised June 2,200O
RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS TAUFIQUE
TO PRESIDING OFFICERS INFORMATION REQUEST NUMBER 1
Question 5, Page 2 of 2
e. The numbers in sheet “Discounts” cells D49-D54 are not directly shown in
USPS-T-24, p. 18 because in that particular table witness Miller presents total
unit mail processing costs, and combines mail processing and delivery costs
to calculate worksharing-related savings. I calculate worksharing-related
savings in my spreadsheet by combining the mail processing and delivery
costs, and then use an additional shape-related saving estimate. The shaperelated saving estimate is based on the difference between Basic
Nonautomation Flat and Basic Nonautomation Letter. The worksharingrelated mail processing costs used in my “Discount” sheet cells D49 and D54
are found in Appendix II, page II-I of witness Millers testimony. Errata will be
filed correcting this reference.
f. The RPW correction factor should be used to adjust the TYAR revenues.
DECLARATION
I, Altaf H. Taufique, declare under penalty of perjury that the foregoing answers are
true and correct, to the best of my knowledge, information, and belief.
Dated:
T/t&c
a
aooO
CERTIFICATE OF SERVICE
I hereby certify that I have this day served the foregoing document upon all
participants of record in this proceeding in accordance with section 12 of the Rules of
Practice.
qic.s/&u.m~
I
475 L’Enfant Plaza West, SW.
Washington, DC. 20260-I 137
June 2,200O
David H. Rubin